I don't know clearly but i think NRI can't invest in IPOs. If this is true, then it is a very crazy thing. Every year NRIs send countless billion dollars back to the country. They should be given the due respect they deserve. Its not their fault that they are living abroad.

SEBI has some strict rules regarding investment by NRIs in stock market. Each of the public limited companies got to inform SEBI of the NRI holding in their company(it can't exceed a particular percentage amount) as this can have direct implication on FDI policy. Its difficult for companies to report NRI holding in IPOs so thats the main reason of NRIs not being able to invest in IPOs. They can anytime pickup the shares of the same company in the secondary market using NRO-PIS account.

There are a lot of restrictions on NRIs investing in securities market in India. In most cases, NRIs can invest in IPOs except for NRIs staying in USA and Canada. You need to close the existing Demat account that you had when you were resident. You have to open a new Demat account once you become NRI.

I don't understand why it is not made easy for NRIs to invest back in the country of their origin. If one moves to another country but still wishes to retain some investments back in home country, the process should be simplified. Hope we get to see some relaxations.

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